# 30 C.F.R. § 1206.352 (2026): How do I calculate the royalty due on geothermal resources used for commercial production or generation of electricity? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_352 ## Section - **Citation:** 30 C.F.R. § 1206.352 (2026) - **Heading:** How do I calculate the royalty due on geothermal resources used for commercial production or generation of electricity? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 30 CFR: Mineral Resources / Chapter XII / Part 1206 / Subpart H / § 1206.352: § 1206.352 How do I calculate the royalty due on geothermal resources used for commercial production or generation of electricity? ## Text (a) If you sold geothermal resources produced from a Class I, II, or III lease at arm's length that the purchaser uses to generate electricity, then the royalty on the geothermal resources is the gross proceeds accruing to you from the sale of the geothermal resource to the arm's-length purchaser multiplied by either: (1) The royalty rate in your lease; or (2) The royalty rate that BLM prescribes or calculates under 43 CFR 3211.17. See § 1206.361 for additional provisions applicable to determining gross proceeds under arm's-length sales. (b) If you use the geothermal resource in your own power plant for the generation and sale of electricity, the following provisions apply (1) For Class I leases, you must determine the royalty on produced geothermal resources in accordance with the first applicable of the following paragraphs: (i) The gross proceeds accruing to you from the arm's-length sale of the electricity less applicable deductions determined under §§ 1206.353 and 1206.354 of this part, multiplied by the royalty rate in your lease. See § 1206.361 for additional provisions applicable to determining gross proceeds under arm's-length sales. Under no circumstances may the deductions reduce the royalty value of the geothermal resource to zero; or (ii) A royalty determined by any other reasonable method approved by ONRR under § 1206.364 of this subpart. (2) For Class II and Class III leases, the royalty on geothermal resources produced is your gross proceeds from the sale of electricity multiplied by the royalty rate BLM prescribed for your lease under 43 CFR 3211.17. See § 1206.361 for additional provisions applicable to determining gross proceeds under arm's-length sales. You may not reduce gross proceeds by any deductions. ## Nearby sections - [30 C.F.R. § 1206.350 (2026) § 1206.350 What is the purpose of this subpart?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_350.md) - [30 C.F.R. § 1206.351 (2026) § 1206.351 What definitions apply to this subpart?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_351.md) - [30 C.F.R. § 1206.352 (2026) § 1206.352 How do I calculate the royalty due on geothermal resources used for commercial production or generation of electricity?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_352.md) - [30 C.F.R. § 1206.353 (2026) § 1206.353 How do I determine transmission deductions?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_353.md) - [30 C.F.R. § 1206.354 (2026) § 1206.354 How do I determine generating deductions?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_354.md) - [30 C.F.R. § 1206.355 (2026) § 1206.355 How do I calculate royalty due on geothermal resources I sell at arm's length to a purchaser for direct use?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_355.md) - [30 C.F.R. § 1206.356 (2026) § 1206.356 How do I calculate royalty or fees due on geothermal resources I use for direct use purposes?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_356.md) - [30 C.F.R. § 1206.357 (2026) § 1206.357 How do I calculate royalty due on byproducts?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_357.md) - [30 C.F.R. § 1206.358 (2026) § 1206.358 What are byproduct transportation allowances?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_358.md) - [30 C.F.R. § 1206.359 (2026) § 1206.359 How do I determine byproduct transportation allowances?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_359.md) - [30 C.F.R. § 1206.360 (2026) § 1206.360 What records must I keep to support my calculations of royalty or fees under this subpart?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_360.md) - [30 C.F.R. § 1206.361 (2026) § 1206.361 How will ONRR determine whether my royalty or direct use fee payments are correct?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_361.md) - [30 C.F.R. § 1206.362 (2026) § 1206.362 What are my responsibilities to place production into marketable condition and to market production?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_362.md) - [30 C.F.R. § 1206.363 (2026) § 1206.363 When is an ONRR audit, review, reconciliation, monitoring, or other like process considered final?](https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_363.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T30_P1206_S1206_352. Check the current official text before relying on it. Not legal advice.